Stallion India Fluorochemicals IPO GMP: A Complete Report
Stallion India Fluorochemicals Limited, engaged in the production of refrigerants and industrial gases, has announced the date for its Initial Public Offering (IPO), which is set for January 16, 2025. Investors particularly focusing on metrics such as the Grey Market Premium or GMP exhibited undue excitement over this offering. In this article, the minutiae surrounding the IPO, the company’s net worth, its standing in the industry, and how the GMP affects investor feelings are analyzed.
How To Read The Grey Market Premium®?
The Grey Market premium denotes the amount that investors are willing to pay for an IPO above the opened price in an unofficial context. An increased GMP is usually a strong indicator that investors are actively seeking shares with the belief that post-listing the shares will perform well. A word of caution though: GMP is an informal and unregulated activity so be careful of this rate.
Company Overview
Stallion India Fluorochemicals Limited deals with the Industrial and Medical Grade Gases and Refrigerants that are used in Air conditioning, Refrigeration, Fire fighting, Semiconductor, Automotive, Pharmaceuticals, and Medical industries. Given the wide array of products and appropriate placement in the industry the company should fare well.
IPO Details
It opens on: January 16, 2025 and ends on: January 20, 2025.
Share price: Rs 85 to Rs 90 per equity share
- Upper price limit of the issue: Rs 199.45 crores
- Selling limit: 165 shares Lot size 165 shares per lot
New capital share structure offered is as follows:
A fresh issue of 17800000 equity shares and 43020000 shares by Promoter Shazad Sheriar Rustomji in an Offer for Sale.
Utilization of Proceeds
The net proceeds of the IPO will be deployed for Working Capital Requirements: Meeting the day-to-day functioning of the business enhancing liquid support for the company, expenditure incurred, and expenses paid for the construction of new plants in Maharashtra and Andhra Pradesh to increase its production capacity. General Corporate Purposes Other short term/corporate strategy initiatives.
Financial Performance
Earnings Lobby Jaunt have been revised for the fiscal year ending March 31, 2024 from: Rs 233.23 crores.
PAT profit after specifying tax of Rs 14.79 crores
This indicate that the company is financially sound and has great potential to continue growing in the fast-paced fluorochemicals industry.
Industry Outlook:
Stallion india has a more diversified range of products and its ongoing strategic expansion makes it best suited in this industry since the fluorochemicals industry has been growing due to the increase in demand from refrigeration,air conditioning and pharmaceutical industries.
Factors to Consider Before Investing
Although the Grey Market Premium reflects the prevailing market sentiment, it is advisable that investors do their homework. It is crucial that the company’s fundamentals, standing in the industry and likely future performance is analyzed before any investment are considered. It would not be wise to solely rely on GMP as it remains speculative as well as unregulated.
Closing Remarks
Considering the Stallion India Fluorochemicals IPO along with the firm’s impressive financials and favorable positioning in the industry envelope the investors with an attractive opportunity. That said, the investment should be done considering the financials issued and the grey market premium that the investment sentiment paints.
Stallion India Fluorochemicals Limited’s initial public offering has gained considerable interest by investors and market analysts alike and it now makes sense to explore the details in order to comprehend what the recent subscription figures and grey market premium strengthen trends entails for the stakeholders.
Stallion India Fluorochemicals IPO
The IPO is open from January 16, 2025, until January 20, 2025 and the company is expected to raise in the region of ₹199.45 in crores with a share delisting price of ₹85 to ₹90. There is a sell offer for 43.02 lakh equity shares alongside a new issue offering ₹160.73 crores.
IPO WATCH
Subscription Details
The IPO up until now has shown a robust demand as it has raised by 32.19 oversubscriptions as of January 17, 2025, with retail Investors standing at 31.15 times ads non institutional investors peaking at 77 . United Qualified Institutional Buyers (QIB) have the lowest at 0.31 times taking the total to
The allotment is expected at January 21,2025 with the Brahman stock Exchange (BSE) and the National stock exchange (NSE) set to show it on January 23,2025.
FIRST PIPER
Grey Market Premium (GMP) Trends
The Stallion India Fluorchemicals IPO is expected to be ₹40 and as a result ₹130 per share with the ₹40 apportioning a 44.44 percent increase from the initial price share.
IPO REPORTER
Company Financials
Stallion India Fluorokin is consistent with its financial growth as evident from Revenue and profit during the later stages of the year.
31 Mar 2022 186.34 21.11
31 Mar 2023 226.06 9.75
31 Mar 2024 236.23 14.79
30 Sep 2024 141.53 16.57
The growth in the net worth and assets of the company indicate that the company is on sound financial footing.
CHITTORGARH
Key Performance Indicators
As per the latest report dated March 31, 2024, the company’s key performance indicators include:
Return on Equity (ROE): 12.54%
Return on Capital Employed (ROCE): 13.96%
Debt to Equity ratio: 0.55
Profit After tax (PAT) Margin: 6.26%
These metrics highlight the company’s efficient allocation of assets and financial management.
CHITTORGARH
Objects of the Issue.
The net proceeds arising from the IPO are intended for purposes which include:
Financing additional working capital needs.
Capital investment for the semiconductor and specialty gasses plants located in Maharashtra State.
Capital investment for refrigerants plant in Andhra Pradesh State.
General corporate purposes.
The above activities are intended to strengthen the operational capacity and market penetration of the company.
Question and Answers Section:
What is the Grey Market Premium (GMP) for Stallion India Fluorochemicals’ IPO?
The GMP ranges per the demand for the market and the particular investors views. The latest reports for Stallion India’s GMP however suggests a bullish stance for the issue price which should be taken with a pinch of salt as these are still unregulated.
How can investors apply for the Stallion India Fluorochemicals IPO?
Investors can apply for the IPO through various brokerage services which allow for IPO applications. For example, Zerodha users can apply through UPI when logging into the Zerodha Console and filling out the required forms.
What are the key dates for the Stallion India Fluorochemicals IPO?
IPO Opening Date: January 16, 2025.
IPO Closing Date: January 20, 2025.
Basis of Allotment Finalization: January 21, 2025.
Initiation Refunds: January 22, 2025.
Shares Credit to Demat Accounts: January 22, 2025.
Date of Listing: January 23, 2025.
How many shares make a minimum application for Stallion India Fluorochemicals IPO?
The minimum lot size for retail investors is 165 shares which can be bought at a minimum purchase of one lot which translates to an investment of INR 14,850 at the upper price band.
What are the risks involved with Stallion India Fluorochemicals IPO investment?
Investing in Initial Public Offers is associated with risks especially with respect to price movements due to fluctuations in the stock market, issues specific to the sector, and operational risks pertaining to the company. It is important that one reviews the company’s status, competitive environment and expansion plans before deciding to invest.